FED recently adopted two proposals to revise and extend, for three years, the monthly, quarterly, and annual capital assessments and stress testing reports (FR Y-14A/Q/M). The revisions are applicable with as of dates ranging from December 31, 2019 to December 31, 2020. The proposals involved incorporation of revisions related to both the current expected credit loss (CECL) methodology and the non-CECL methodology into the FR Y-14A/Q/M reports. FED has also published the reporting forms and instructions for FR Y-14A/Q/M (OMB No. 7100-0341).
FED, on July 31, 2019, had published two proposed notices in the Federal Register on the extension, with revision, of the Capital Assessments and Stress Testing Reports. The proposal was to implement a number of changes to certain schedules of the FR Y-14A, FR Y-14Q, and FR Y-14M reports. The proposed revisions consisted of deleting or adding items, adding or expanding schedules or sub-schedules, and modifying or clarifying the instructions for existing data items, primarily on the FR Y-14Q and FR Y-14M reports. Most of the proposed changes were intended to reduce reporting burden for firms, to clarify reporting instructions and requirements, to address inconsistencies between the FR Y-14 reports and other regulatory reports, and to account for revised rules and accounting principles. A limited number of proposed revisions would have modified the reporting requirements and added or expanded sub-schedules to improve the availability and quality of data to enhance supervisory modeling and for use in DFAST.
The proposed revisions were also meant to address the revised accounting for credit losses under the FASB Accounting Standards Update (ASU) No. 2016-13, titled Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and implement the CECL accounting methodology across all of the FR Y-14 reports. The proposed changes to the FR Y-14 reports paralleled the related changes to the Consolidated Financial Statements for Holding Companies (FR Y-9C) for CECL, as appropriate. The proposed reporting changes related to CECL were also consistent with the revisions indicated in the interagency final rule that incorporated the CECL transition.
Keywords: Americas, US, Banking, Stress Testing, FR Y-14, CECL, Dodd Frank Act, DFAST, Reporting, CCAR, FR Y-9C, Financial Instruments, IFRS 9, FED
Previous ArticleHKMA Publishes List of Systemically Important Banks in Hong Kong
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.
EIOPA launched the 2021 stress test for the insurance sector in EU.
UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.
EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.